ISA Coronavirus Update (11th of May)

Daily Summary

The number of Covid-19 cases around the world passed the four million mark last weekend and now stands at nearly 4.2 million.  Meanwhile, the number of fatalities attributed to the pandemic is now more than 284,000.  While the these figures have increased at a steady rate in recent weeks, they have not accelerated as had been feared.

The number of fatalities in Europe surpassed 150,000 this past weekend, while the number of fatalities in the United States surpassed 80,000.  Meanwhile, the number of fatalities outside of these regions is likely much higher than official figures indicate.

The number of new cases of Covid-19 in Russia continued to rise sharply, while countries such as Brazil, India, Peru, Mexico and Saudi Arabia also saw their numbers of cases continue to rise at a dangerously high rate.

The United Kingdom overtook Italy to become the European country with the most fatalities from the coronavirus crisis.  Currently, there are 219,000 cases of the coronavirus in the UK, with nearly 32,000 fatalities.  Because of this, the British government was forced to introduce a two-week quarantine for most people entering the UK from abroad.

Key Developments

Soaring Unemployment: Last month, the United States lost a record 20.2 million jobs, and while this was a slightly smaller number than expected, it nevertheless contributed to the unemployment rate in the US soaring to 14.7% in April.  Other countries also reported major job losses as well.

Chinese Exports Rise, But Imports Fall: Exports from China surprisingly increased last month, rising by 3.5% year-on-year, due to a surge in the exports of medical equipment.  In contrast, imports into China plunged by 14.2% year-on-year in April 2020 as domestic demand remained depressed.

Trend to Watch

In many places where lockdown measures have been relaxed, we have seen a rapid increase in the number of new cases of Covid-19.  This has raised fears that lockdown measures will have to be maintained longer than most countries hope.